ELCI UK CREATIFS LTD

Executive Summary

ELCI UK CREATIFS LTD exhibits a high risk profile driven primarily by liquidity shortfalls and significant creditor obligations relative to asset levels. While regulatory compliance is maintained and fixed asset growth is positive, the lack of operational transparency and negative working capital suggest potential solvency challenges. Further due diligence is essential to understand the company’s cash flow dynamics and long-term viability.

ELCI UK CREATIFS LTD - Analysis Report

Company Number: 13984874

Analysis Date: 2025-07-20 11:01 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets, minimal net equity, and significant long-term creditor obligations relative to its asset base. The absence of employees and low current assets raise concerns about operational cash flow and sustainability.

2. Key Concerns:

• Negative net working capital: Current liabilities exceed current assets by over £1,300 consistently, indicating liquidity strain.
• Substantial long-term liabilities (£85,000) approaching total fixed assets value, suggesting high gearing and solvency risk.
• No employees and lack of profit & loss account filed limit visibility into operational performance and cash generation capabilities.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, demonstrating regulatory adherence.
• Ownership and control are consolidated under a single director and 75-100% shareholder, which may facilitate swift decision-making.
• Incremental growth in fixed assets from £51,900 to £86,900 year-on-year suggests some investment in long-term resources.

4. Due Diligence Notes:

• Investigate the nature and terms of the £85,000 creditor amounts due after more than one year to assess repayment obligations and any contingent liabilities.
• Review cash flow statements or management accounts (not filed publicly) to evaluate liquidity, operational cash generation, and funding sources.
• Clarify business model viability given no employees and limited current assets, including confirmation of revenue streams and client contracts.
• Confirm whether related party transactions exist, given sole director/shareholder structure.
• Assess risks associated with the director’s capacity and governance structure due to single-person control.